G-20/Tech War/Consumption/Carrefour Quits/Bonds

Global Asset Allocation, Politics & Governance, Ecstrat

John-Paul Smith

Global Asset Allocation, Politics & Governance

Ecstrat

Ecstrat is a consultancy advising on asset allocation between global equity markets, with a focus on the intersection of governments, geopolitics, governance and markets.
 
Over the past few years and more especially since the Great Financial Crisis (GFC), investors have become more focused on short-term market movements and real-time returns and have consequently neglected the analysis of the underlying structural themes that underpin longer term performance.
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More specifically we believe that the evolution of governance-based relationships between investors, controlling shareholders, labour and the state is one of the primary determinants of both relative and absolute performance between individual equity markets.
 
We will endeavour to provide investors with some of the context surrounding governance-related issues which encompass many different disciplines including history, economics and political science, as well as the financial metrics which are the most obvious manifestation of the structural characteristics of each market.
 
We will pay particular attention to the shifts and potential inflection points for governance in individual markets as these are often the best lead indicators for both economic and market performance.

Cross Asset Strategy

Multiple Countries / Cross Asset Strategy

<p>Emerging equities have rallied sharply during June along with their global peers, on the back of the more benign global monetary environment and rising expectations that the US and China will be able to negotiate a compromise of sorts around the trade dispute. Nevertheless, the performance of the main MSCI EM benchmark has been little better than flat over Q2 at the time of writing and US equities have continued their strong outperformance over the year-to-date.</p>

Emerging equities have rallied sharply during June along with their global peers, on the back of the more benign global monetary environment and rising expectations that the US and China will be able to negotiate a compromise of sorts around the trade dispute. Nevertheless, the performance of the main MSCI EM benchmark has been little better than flat over Q2 at the time of writing and US equities have continued their strong outperformance over the year-to-date.

Emerging Market Equities: Bullish Consensus Overlooks Poor Fundamentals